The Hague Office Market Profile - Q4 2013

12 Month
Summary Statistics Q4 13 Q-o-Q Y-o-Y Outlook
Take-up (000s sqm) 28 117.2 % 5.3 %
Vacancy Rate (%) 10.9 80 bps 50 bps
Prime Rent (psm) 205 0 % 0 %
12 Month
Q4 13 Q-o-Q Y-o-Y Outlook
Capital Value (psm) 3445 0 % -0.8 %
Prime Yield % 5.95 0 bps 5 bps
Change*
Change*

* % Change for Prime Rents and Capital Values calculated using local currency
Market Overview
Office take-up increased significantly over the previous
quarter to reach 28,430 sq m in Q4, up 117% q-o-q and 5%
y-o-y. Q4 volumes were boosted by two deals in excess of
5,000 sq m, that together accounted for more than 50% of
the quarterly take-up. The largest transaction was TNO
leasing 9,735 sq m in the New Centre submarket. Tenant
are constantly seeking to upgrade from mono-functional,
satellite locations to dynamic and centrally located, mixed-
use developments that offer flexible space solutions and
amenities. Prime rents remained unchanged at 205 / sq
m pa and are expected to remain at that level in the near
term. There was one new completion of 5,000 sq m in Q4
2013 that was fully pre-let by the University of Leiden. A
total of 6,300 sq m is currently under construction due to be
delivered in 2014, of which just 1,900 sq m is currently
available. Development activity will be low in the medium
term, and on a pre-let only basis. The vacancy rate
increased 80 bps q-o-q to 10.9%. On a submarket level,
the vacancy rate in core locations remained low with 5.8%
in New Centre and 6.6% in the Beatrixkwartier submarket.
The vacancy rate is expected to remain stable in the near
term. The government is trying its best to sell and convert
grade C buildings to other use than offices in an effort to
reduce structural vacancy in the market. Tenants are taking
advantage of the current and future supply dynamics to
negotiate the best possible deal in their favour. Incentives
at the prime end include 12-15 month rent free period on a
5+5 year lease contract and 12-22 months rent free on the
same lease length at the overall market level. The Q4 2013
investment volume at 49 million increased by 142% q-o-q,
a significant increase over the activity recorded in Q4 2012.
Office only investment totalled 19.5 million in Q4. Prime
yields were stable at 5.95% but are expected to compress
in the near term.



Figure 1: Take-up
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TakeUp 10yr Average

Figure 2: Supply and Vacancy Rates
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000s sqm
VacancyTotal VacancyRate
Vacancy Rate %

Figure 3: Prime Rents and Rental Growth
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Rental Growth PrimeRent
Prime Rent (psmpa) Annual Rental Growth*

Figure 4: Prime Yields
4.50
5.00
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6.50
7.00
Q
4

9
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9
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1
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1
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1
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PrimeYield 10Yr Ave 20Yr Ave
Prime Yield (%)

Source all Charts: Jones Lang LaSalle













The Hague Office Market Profile Q4 2013
Pulsereports from Jones Lang LaSalle are frequent updates on real estate market dynamics.
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Jones Lang LaSalle Contacts

Ysbrand de Zeeuw
Head of Office Agency The Hague
The Hague
+31 70 318 1347
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Dr van Leeuwen
Head of Capital Markets
Amsterdam
+31 20 540 7912
dre.van-leeuwen@eu.jll.com
Michael Hesp
Head of Research
Amsterdam
+31 20 540 7851
michael.hesp@eu.jll.com
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